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More than a third of Britons reckon that interest rates will rise in the coming year, despite believing that inflation is under control.

According to the Bank of England’s quarterly survey of 4,000 people, carried out by GfK NOP, expectations of an early rise in rates have increased since November. The Bank’s inflation attitudes survey showed 40 per cent forecasting a rate rise over the next 12 months, up from 34 per cent in November, its highest level since May 2012.

The predictions came as the public forecast inflation to be 2.8 per cent in 2014, the lowest outlook in